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6 Things that Matter with your First Credit Card
6 Things that Matter with your First Credit Card

According to the Reserve Bank of India, 18.57 million people used credit cards back in 2013. This figure increased to 41.03 million by mid-2018. The rising figures show how swiftly cashless transactions are taking over the market. That is why; different financial companies are providing beneficial offers on credit cards.

However, so many choices and their utilities in the market often confuse prospective individuals to avail the best credit card.  

A credit card does not aid only in online payments. It can be instrumental in increasing your CIBIL score, provided the credit card payment is made in time. A higher credit score signifies your creditworthiness and reduces the hassle involved in availing loans.

Besides, there are other key points which first credit card users need to consider. Following are some of those:


Interest Rates –

Lenders charge a higher rate of interest on the outstanding amount if you fail to make the credit card payment within the deadline. Generally, it is calculated annually, but the charges are divided by 365 and applied monthly. Interest rates may vary between lenders and type of the credit card.


Credit Limit – Credit limit is the maximum amount that a financial institution allows you to borrow on that card. It is always better to avoid using above 30 - 50% of your credit limit since it can negatively affect your CIBIL score. The limit offered depends on the lender and is liable to changes based on the cardholder’s income.

Reward Points – The reward points which you earn against your purchases should cater to particularly your expenses. For example, you should avail travel credit cards if you are fly frequently. The points earned can be redeemed for various offers.

Gift vouchers – Shops and brands often have tie-ups with financial institutions. So, you can redeem these points for gift vouchers, VIP entries, etc. Customers may also get a 10-20% discount based on their reward points.

Travel Miles – Reward points can also be converted into travel miles and for discounts on accommodations, food and flight bookings.

Cashback – Credit cards offer you the benefit of redeeming your reward points for attractive cashback. This reflects on your credit card statement. For flat-rate cashback credit cards, the percentage of cashback remains the same.

Grace Period– Grace period is a time span from the end of a billing cycle to the payment due date. Financial companies offer this period of 21 to 25 days to make the credit card payment. Interests are levied only when you fail to clear off the dues within the deadline.     

Additional Charges – Credit cards often come with various types of charges.

Annual fees – Lending organisations charge a yearly fee on providing the credit card. Some companies waive this off for the first year to encourage prospective cardholders.

Late charges – This fee is charged in case of delayed credit card payment. If you are a punctual customer, you can always contact the organisation in advance to inform any ‘accidental’ late payment.

Finance Charges – This is levied in case you fail to pay the balance amount even after the allotted grace period.

Over the limit fee – If your expenses exceed the allotted credit limit in your card, your lender will charge a fee for the violation. This might be added up to two billing cycles when your expenses exceed limit. So, you must always keep your credit utilisation within 30-50% of your limit.

Annual Savings –  All credit cards ensure a certain amount of savings on a yearly basis, thanks to attractive reward programs. So, you must use your credit cards strategically to get the most out of it. For example, you can ensure yearly savings of Rs. 55,000+ with Bajaj Finserv RBL Bank SuperCard. This card combines the power of 4 different credit cards into one and comes with 3 attractive industry-first features.

  • Cash withdrawal from any ATM across India and repayment with 0% interest rate within 50 days.
  • Emergency personal loan against the unutilised credit limit with an interest-free period of up to 90 days.
  • Loan repayments with 3 easy EMIs.


Additionally, Bajaj Finserv provides with pre-approved offers for credit cards. These schemes simplify the entire process and save more time. Pre-approved offers are also available for home loans, business loans, personal loans and other financial products and services. You can check your pre-approved offers by providing essential details like name and phone number on their online portal.

You can either apply for both offline and online credit cards via easy procedures. Look for the eligibility criteria, documents and other requirements if you want to avail one soon. Use it responsibly to reap the maximum benefits.

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